Change Orders are instructions to revise construction plans after they have been completed. Change orders are common to most projects, and very common with large projects. After the original scope (or contract) is formed, complete with the total price to be paid and the specific work to be completed, a client may decide that the original plans do not best represent his definition for the finished project. Accordingly, the client will suggest an alternate approach.
Common causes for change orders to be created are:
" The project's work was incorrectly estimated
" The customer or project team discovers obstacles or possible efficiencies that require them to deviate from the original plan
" The customer or project team are inefficient or incapable of completing their required deliverables within budget, and additional money, time, or resources must be added to the project
" During the course of the project, additional features or options are perceived and requested.
A Construction Contract Change Order is a formal document used to modify or amend the terms of a construction contract in the state of Arkansas. It allows for changes to the scope of work, price adjustments, time extensions, or any other modifications that may arise during the construction process. Change orders are an essential part of the construction industry as they ensure transparency and protect the rights of both the contractor and the client. In Arkansas, there are different types of Construction Contract Change Orders that serve specific purposes. These include: 1. Scope Change Order: This type of change order is used when there is a need to alter the scope of work defined in the original contract. It may involve adding or removing certain tasks, changing specifications, or revising project plans. 2. Price Adjustment Change Order: This change order is utilized when there is a need to modify the contract price due to unforeseen circumstances or changes in the project scope. It includes adjustments for variations in material costs, labor expenses, or additional work required. 3. Time Extension Change Order: When a project encounters delays or unforeseen circumstances beyond the contractor's control, a time extension change order is issued. This change order allows for an extension of the contract's completion date to accommodate the additional time required to complete the project. 4. Design Change Order: If there is a need to alter the design or architectural plans after the contract is signed, a design change order is issued. It includes modifications such as layout revisions, structural changes, or changes to finishes and fixtures. 5. Owner-Requested Change Order: In some cases, the owner may request changes to the original construction contract. The owner-requested change order allows for modifications specific to the owner's preferences or requirements. Arkansas' contractors and clients must carefully review and negotiate each change order to ensure it accurately reflects the desired modifications while protecting the interests of both parties. Change orders generally require signatures from both the contractor and the client to be legally binding. It is essential to keep accurate documentation of all change orders avoiding potential disputes or misunderstandings during the construction process.
